Piggy-Banking On Profits: How HDFC Bank Yielded 68,300% Returns

If you had invested ₹1 lakh in HDFC Bank in October 2002, you could have had ₹6.83 crores today! This multibagger grew 683x in 20 years. Here’s a closer look at the company.

🏦 Stock Name: HDFC Bank Ltd.
🏦 NSE: $HDFCBANK

⭐ About The Company
HDFC was among the first financial institutions in India to receive an ‘In Principle’ approval from the RBI to set up a private sector bank. This was done as part of liberalisation in the Indian banking industry in 1994.

HDFC Bank was incorporated in August 1994, with its registered office in Mumbai, India. It commenced its operations as a scheduled commercial bank in January 1995. As of June 30, 2022, it has a nationwide distribution network of 6,378 branches and 8,620 ATMs in 3,203 cities.

The bank has several feathers in its cap:
💵 Is the 2nd largest direct taxes collector
💵 No.1 in middle-market banking with a 60% market share
💵 Has one of the largest banking networks in rural and semi-urban India
💵 Continues to be a leader in the auto loans segment
💵 Market leader in cash management services and multiple asset categories with best-in-class portfolio quality

💼 Payment Ecosystem
HDFC Bank is a leading player in the payments ecosystem. Every third rupee spent through cards in India happens through an HDFC Bank-issued card. It has issued almost 3.21 crore debit cards and 1.45 crore credit cards, which helped them have a dominant market share with approximately 50% of electronic card volumes.

It was the first bank in India to launch an international debit card in association with VISA and it also issues MasterCard’s Maestro debit card.

💰 Stock Value
💵 HDFC Bank had 2 stock splits:
📅 On July 14, 2011, a stock split in the ratio of 10:2 (4773 x 5)
📅 On September 19, 2019, a stock split in the ratio of 2:1 (23,865 x 2)
The effective number of shares went from 4773 to 47730

💵 On October 7, 2002, the shares of the company were trading at ₹20.95, while they were priced at ₹1431 as of October 6, 2022.